However, there are a few potential dangers. The rate of interest is charged on the total sum owed, even if part is paid off immediately, so unless you are in a position to totally pay off your card, it can be easy to rack up large amounts of debt. On the other hand, once you realise that a credit card is like any other form of credit, and must be used wisely and within the limits of your means, they can be hugely convenient and secure.

While credit cards can be stolen just like money, unlike cash they can be cancelled when you realise this, making them much safer to carry than large amounts of money. Once their theft is reported promptly after the incident, it should cause only a little inconvenience.

Credit cards can be especially useful for eager travellers. The fact that credit cards are so universally accepted (especially those powered by Visa or MasterCard) around the world means that carrying huge amounts of foreign currency or travellers’ cheques can be a thing of the past. Credit cards allow you to not only pay for items, but withdraw local currency from ATMs. While there are charges for foreign withdrawals, if used in large chunks rather than many small withdrawals, these costs can be negligible.

Similarly, having a credit card opens up the world of internet shopping, since they are by far the most convenient and broadly accepted means of payment over the web. Shopping online with a credit card can save you hundreds while giving you all the convenience of shopping from home. Credit cards can open the world up to you, whether travelling abroad or staying at home.

The important thing when looking for a credit card is to find the right plan for you. There are dozens of available options on the market, including cards from the traditional big companies such as Visa, MasterCard and the banks and ranging to the more unusual providers such as supermarkets and even airlines! It is wise to spend the time sitting down and looking for the right credit card for you – in the long term it will save you time and money.

While the most immediate and obvious concern is the rate of interest charged on the credit card (which usually ranges from 11% to 19%), there are other considerations as well. Many cards have extra charges you may not have thought of – a charge for going over your limit; a charge for cash withdrawals from your card; foreign exchange charges, etc. You should take these factors into consideration as well when applying for a card.

Choose the card with the right combination for you, and do not simply look for a high credit limit. Application is generally straightforward and easy, with all the details provided by the institutions offering the cards, usually along with the promotional information.

Consider credit cards that offer low introductory rates. These are certainly attractive to first time users, and may charge little to no interest in the first year. This can be very convenient, but be careful not to run up huge debts in this interim period – after the introductory time, rates usually rise to be quite high and are charged on all the money you have borrowed since getting the card. Remember, if anything looks too good to be true, it probably is and there are many fraudsters out to prey on the unwary consumer, innocent of financial matters. On the other hand, this does not mean you should avoid low interest cards or any other non-mainstream credit card.

Often, with everything taken into account, they will offer better value than credit cards from the big banks.

Credit cards have had a huge impact on the way people shop. They have made credit relatively cheap and easy, and have brought a new dimension of convenience to shopping. While there are certain caveats to bear in mind when using your credit card, they can be of great benefit, and your question now should be “Which credit card should I apply for?”